Teacher pension suit planned

The Chicago public school system is preparing a lawsuit against the state to fight what the district considers to be inequities in the way the state funds teacher pensions.

For years, Chicago has complained that state spending favors the retirement fund for suburban and Downstate teachers, whose pensions are paid through the Teachers Retirement System, while giving short shrift to Chicago teachers, whose pensions are paid out of a separate fund.

Chicago schools chief Arne Duncan is expected to outline the legal strategy Friday in a news conference with Deborah Lynch, Chicago Teachers Union president, according to officials familiar with the plan.

"This is just one example of a number of inequities between Chicago and the rest of the state," said Lynch, who confirmed a lawsuit is being prepared.

The joint strategy comes as the union and the school system are poised to begin negotiations later this year on the teacher contract that expires in 2003.

The union is not a plaintiff in the suit, Lynch said, but individual teachers are, along with city property owners.

"We're looking at a number of strategies to try to equalize funding. Yes, we are contemplating a lawsuit," said Duncan, who declined to provide details Thursday.

In recent years, the statewide retirement system has been less healthy than Chicago's system.

The rules that govern the two funds, which are outlined in state law, are arcane, but the consequences result in Chicago being short-changed by millions of dollars, according to Chicago school officials. They contend local property taxes that could be used to pay for education or capital improvements must be directed to teacher retirement instead.

State Sen. Dan Cronin (R-Elmhurst), chairman of the Senate Education Committee, said some of the rules Chicago is complaining about were enacted as a result of lobbying by past Chicago school officials.

"This signals a new era," said Cronin, who said he met with Duncan this week and was unaware of the suit. "The old, militant Chicago Teachers Union is back."